GSI Technology Posts 22% Revenue Growth, Secures $2M SBIR and Smart City Deal
GSI Technology's fiscal 2026 revenue rose 22% year-over-year to $25.1 million, with gross margin expanding to 54.5% and Q4 sales up 7.4% to $6.3 million. The company ended the quarter with $67.2 million cash, no debt and secured ~$2 million in SBIR funding plus a Phase I smart city project.
1. Fiscal Year 2026 Financial Highlights
GSI Technology reported $25.1 million fiscal 2026 revenue, up 22% from $20.5 million, with gross margin expanding to 54.5% from 49.4%. Operating expenses reached $31.2 million led by R&D on the Plato chip design, resulting in a net loss of $13.2 million, or $(0.42) per share.
2. Fourth Quarter Fiscal Year 2026 Results
In Q4 fiscal 2026, net revenue rose 7.4% to $6.3 million from $5.9 million a year earlier, while gross margin declined to 52.4% due to product mix shifts. Operating expenses increased on ongoing chip design efforts, with R&D partially offset by SBIR awards, reducing overall cash burn.
3. Balance Sheet Strength and Funding Awards
The quarter closed with $67.2 million in cash and no debt, providing a strong financial foundation for edge AI initiatives. Subsequent to quarter-end, GSI secured a ~$2 million U.S. Army SBIR Phase II contract for the Gemini-II platform and won Phase I of a smart city deployment, contributing to over $5 million in non-dilutive funding to date.
4. Fiscal 2027 Outlook
GSI expects Q1 fiscal 2027 net revenues of $5.9 million to $6.7 million with gross margin around 54% to 56% as it advances commercialization of the Gemini-II edge AI platform and works to convert early-stage engagements into design wins.